KUCHING: Glomac Bhd (Glomac) announced that it entered into a sales and purchase agreement with Cyberview Sdn Bhd and Setia Haruman Sdn Bhd for the proposed acquisition of a seven-acre land in Cyberjaya, for a purchase consideration of RM27.4 million.
The company would finance the acquisition through a combination of internal funds and bank borrowings, said RHB Research Institute Sdn Bhd (RHB Research) in its research note yesterday.
On the surface, the total consideration translated into a land cost of RM90 per square feet (psf), compared with RM26 psf for Mah Sing Group Bhd and RM36 psf for Paramount Corporation Bhd.
The research firm further stated that considering Glomac’s land was a commercial land with higher plot ratio and density compared with residential land, the acquisition price of RM27.4 million was therefore reasonable.
This seven-acre land is located in the centre of the Cyberjaya Enterprise Zone and adjacent to Glomac’s existing Glomac Cyberjaya project. Fronting the main road, the land is also surrounded by other prestigious buildings such as those housing corporations HSBC Bank Malaysia Bhd, IBM Malaysia, DHL Express (Malaysia) Sdn Bhd, BMW Malaysia Sdn Bhd, Ericsson (Malaysia) Sdn Bhd and others.
Upon completion, the same concept as Glomac Cyberjaya will be adopted for the land as an extension to the project’s existing development.
Comprising mainly commercial shop offices and a 15-storey office block, 75 per cent of the project had been sold with the remaining 25 per cent to be launched in the next financial year, targeted for ‘en-bloc’ sales.
“As the gross development value of the new piece of land was not given in the announcement, we maintain our financial year 2011-2013 forecast, pending update from the management,” said RHB Research.
Based on this year’s general outlook, the research firm pegged Glomac’s target price at RM1.56 per share.
